OIL giant ExxonMobil, parent company of Esso in the UK, has defended its environmental record.

After protests at its annual meeting from some shareholders, including Manchester insurance giant CIS, the company said that it does recognise that the risk of climate change and takes the issue seriously.

Company spokesman David Eglinton said: "While studies must continue to better understand these risks and possible consequences, we have taken and are continuing to take tangible actions to improve energy efficiency and reduce emissions in our operations."

He said the company was working with industry and government organisations around the world to improve the efficiency of internal combustion engines by as much as 50 per cent.

"ExxonMobil maintains the industry's largest in-house research and development effort, spending more than é300m annually. We employ more than 14,000 engineers and scientists.

"A significant proportion of this work is focused upon finding more energy- efficient ways to explore for, produce, refine and use oil and gas," Mr Eglinton added.